ICICI Bank Q1 revenue jumps 78% on decrease provisions; gross NPAs rise

Aided by decrease provisions, ICICI Bank on Saturday reported a standalone internet revenue of Rs 4,616 crore, up 78 per cent year-on-year for the quarter ended June 2021 as in opposition to Rs 2,599 crore in the identical quarter final 12 months.
The rise in revenue was primarily on account of decrease provisioning. Provisions (excluding provision for tax) fell sharply to Rs 2,852 crore in the course of the quarter, down 62 per cent in comparison with Rs 7,594 crore a 12 months in the past.
According to the financial institution, retail disbursements moderated throughout April and May on account of the containment measures in place throughout numerous elements of the nation.

With the gradual easing of restrictions, disbursements picked up in June and July. Credit card spends declined in April and May and elevated to March ranges in June, pushed by spends in classes like shopper durables, utilities, training and insurance coverage, the financial institution mentioned.
Credits acquired within the overdraft accounts of enterprise banking and SME (small and medium enterprise) clients additionally picked up in June and July after declining in April and May.
“The retail loan portfolio grew by 20 per cent year-on-year and comprised 61.4 per cent of the total loan portfolio at June 30, 2021. Including non-fund outstanding, retail was 50.4 per cent of the total portfolio as of June 2021,” ICICI Bank mentioned.
Gross non-performing belongings (NPAs) have been Rs 43,148 crore as of June 2021 as in opposition to Rs 40,386 crore a 12 months in the past. Gross NPA additions have been Rs 7,231 crore in Q1 of FY2022.
Recoveries and upgrades of NPAs, excluding write-offs and sale, have been Rs 3,627 crore (US$ 488 million) within the first quarter. Gross NPAs written off have been Rs 1,589 crore.

ExplainedDisbursals rise as curbs easeFor the quarter ended June, ICICI Bank reported a pointy 62 per cent decline in provisions — from Rs 7,594 crore a 12 months in the past to Rs 2,852 crore. This decline comes as containment measures throughout a number of elements of the nation have been eased beginning June and disbursements within the retail section gathered tempo. Credit to SME clients too picked up in June, after a decline in April and May.

Net curiosity revenue elevated by 18 per cent year-on-year to Rs 10,936 crore in Q1 of FY2022 from Rs 9,280 crore within the year-ago quarter.
The internet curiosity margin was 3.89 per cent as in comparison with 3.84 per cent within the quarter ended March 31, 2021 and three.69 per cent in Q1 of FY21.
Based on its present evaluation of the portfolio, the financial institution wrote again Covid-19 provisions amounting to Rs 1,050 crore made in earlier intervals. As of June 2021, the financial institution held Covid-19 associated provision of Rs 6,425 crore, it mentioned.
The worth of cellular banking transactions elevated by 117 per cent year-on-year to Rs 349,072 crore within the June quarter.

Digital channels akin to web, cellular banking, PoS and others accounted for greater than 90 per cent of the financial savings account transactions.
During the June quarter, the financial institution modified its coverage on nonperforming loans to make it extra conservative.
The change in coverage resulted in larger provision on non-performing advances amounting to Rs 1,127 crore for aligning provisions on excellent loans to the revised coverage.